Here’s How BitConnect (BCC) Could Become The Safe Haven Cryptocurrency

At the start of 2017, BitConnect (BCC) launched as a sort of store-of-value alternative to the existing raft of cryptocoins that were available at that time. Mid-January (so, a little over under twelve months ago), BCC traded hands for around $0.20 a piece.

Right now, BCC is at $456.

Wider markets and the general public outside of cryptocurrency are looking at the gains they missed out on by not picking up a handful of BTC back in 2011. Very few people are talking about the close to 23,000% gains seen in BCC, however.

That is, until now.

The coin is finally starting to pick up some mainstream attention and – as might be expected – is running on the back of the added volume that this sort of attention spike brings. Over the last twenty-four hours alone, $55 million worth of BCC has changed hands. The coin is now well into the top twenty existing coins by market cap, coming in at number 17 at the latest count with a total capitalization at current prices of $2.8 billion.

So here’s the million-dollar question – what comes next?

Can this one continue to run and – if so – where?

To try and answer this question, we’ve got to look at what’s driving the action in the first place. So, let’s do just that.

We mentioned above that this coin is a store of value coin but let’s go into that in a bit more detail. Back when bitcoin and – subsequently – Litecoin first hit the markets, they were deemed value exchange tokens. That is, they were pitched as (and eventually became) transaction tools that people could use to send and receive money quickly and cheaply. Right now, of course, bitcoin is experiencing some scaling issues that are hampering its ability to fill this use-case but there’s a strong chance (based on the Lightning Network, Atomic Swaps, etc.) that these issues will resolve. That’s not really important here, however, it’s more of a side issue to our expectations for BCC.

BCC Daily Chart

What is important is that BCC was designed from the start as a store of value. You’d buy it and hold it, as opposed to buying it and sending it to someone else. And the way that the guys who created the coin built this store of value feature into BCC was to incentivize holding by adding an interest function into the coin.

When you hold BCC, you receive interest on your coins. There are no other (mainstream) coins that allow this and those that do are generally also alternative function coins – that is, situations in which the coins are also used for some other purpose within the platform or the application with which they are associated.

So how do the numbers stack up?

There’s a maximum coin supply of 28 million and, right now, total circulating supply is around 6.5 million. This means there are still plenty of coins to be mined but – just as with bitcoin – the difficulty associated with the mining of these coins increases over time, which helps the supply to maintain the deflationary aspect of bitcoin that makes it attractive in this sort of respect.

Let’s bring all this together, then, to try and answer our initial question – can this coin continue to appreciate heading forward?

In a word – yes.

The reason that this one is so interesting is that while this market continues to expand, there is going to have to be a form of value storage that comes to the fore. Right now, bitcoin is, to a degree, filling this gap. Once the transaction issues are resolved and bitcoin once again becomes a transaction play, investors are going to start looking for those stores of value that actually offer traditional returns on storage – like interest.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of BitConnect